Vietnam’s industrial real estate market is becoming hotter, driven by an increase in foreign direct investment (FDI) flows.

Industrial property and ready-built factories remain the top choice of investors due to high demand, said experts from Savills Vietnam.

VOV.VN - Vietnam remains a key market for Singaporean real estate investors, with these financiers taking the lead in terms of the development of housing, urban, and industrial property projects throughout the country.

Despite a new outbreak of COVID-19 in Vietnam, the industrial property segment saw positive signs with new industrial zones established and key industrial projects beginning operations, according to a report by Savills Vietnam.

Foreign capital continued flowing to industrial real estate via mergers and acquisitions (M&A) in five months of this year, particularly in Hanoi and Ho Chi Minh City.

Industrial properties continue to be a “bright spot” in Vietnam’s real estate sector, with mounting rental enquiries and increased capital market activity.

The supply of industrial property in the south is expected to rise further in the next five years to capitalise on the increasing demand in the region, and further strengthen its leading position in terms of supply, according to JLL Vietnam.

The Ministry of Construction (MoC) believes the domestic real estate market has overcome the most difficult period due to positive developments in the market as well as the whole economy in the fourth quarter of 2020.

Vietnam will see strong growth in industrial property next year due to higher demand for industrial parks as business expand production or relocate out of China, according to Savills Vietnam.

VOV.VN - With the participation of major foreign investors such as Logos and GLP in the local market, the nation looks set to continue being a popular destination for international industrial property investors moving forward.